Instructions for the replication package of "A Monetary/Fiscal Theory of
Sudden Inflations" by Marco Bassetto and David Miller

The figure_2 directory contains the data and the code that was used to
produce Figure 2. The raw data that we used is included in the Excel
spreadsheet google_search_080424 in the subdirectory data/raw. The header of
each column represents the terms for which we searched on trends.google.com,
and the column corresponds to the answer to our query as of 08/04/2024. The
code figure_2.RProj reproduces Figure 2. It was run in R4.4.2, RStudio
2024.12.0 on a Windows computer with a AMD Ryzen AI 9 HX 370 CPU and 64 GB of
RAM. The code runs in seconds.

The Mathematica directory contains the code that runs all the numerical
experiments in the paper and produces all of the other figures that are based
on numerical computations.

numericalexample.nb computes the 3-period example under both exogenous and
endogenous information acquisition; it also computes the value of a
unilateral deviation in a competitive-equilibrium framework as discussed at
the end of Section III.A, and computes best responses to mixed strategies to
support the conclusions discussed in Appendix 3. It was run in Mathematica
13.3.0.0 on a Linux machine with an Intel Xeon Gold 6142 CPU @ 2.60GHZ and 500 GB of RAM. 
It takes roughly 14 hours, although almost all of the time
is only needed to compute the section on mixed strategies; the baseline
version of the model runs in under 2 minutes.

numericalexample4periods.nb computes the 4-period extension discussed in
Section V.B, including the sample paths of Appendix 5. The code was run in
Mathematica 12.0.0.0 on a Windows computer with an Intel Xeon Silver 4108 CPU
@ 1.80GHz (2 processors) and 32 GB of RAM. Runtime was about 30 minutes.
